In Kuvera Resources Pte Ltd v JPMorgan Chase Bank, N.A. [2023] SGCA 28, the Singapore Court of Appeal held that a confirming bank was not entitled to deny payment to the beneficiary of two letters of credit (LCs) on the ground that its confirmations of the LCs included a contractual clause (Sanctions Clause) which extinguished the confirming bank’s liability as the underlying commercial transaction was allegedly caught by the sanctions laws of the United States of America.
This update takes a look at the Court of Appeal’s decision, which overturned the decision of the General Division of the High Court of Singapore permitting the bank to deny payment by reason of the Sanctions Clause.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
Susan WONG
Head – Banking & Finance
d +65 6416 2402
e susan.wong@wongpartnership.com
Click here to view Susan’s CV.
LIM Wei Lee
Deputy Head – Banking & Financial Disputes
d +65 6416 6871
e weilee.lim@wongpartnership.com
Click here to view Wei Lee’s CV.
Felix LEE
Partner – Banking & Finance
d +65 6416 8035
e felix.lee@wongpartnership.com
Click here to view Felix’s CV.